KAHA Group, a major Indonesian travel consultancy, is entering the e-commerce arena through Karya Harmoni Indonesia, a joint venture with former Wotif product director Thailand, Indonesia and Indochina, Yusuf Ijsseldijk, who has been appointed managing director and CEO of the new entity.
The company will launch its full-service online B2B and B2C travel sales engine, Goindonesia.com, in mid-November, catering to Indonesian domestic and outbound travellers.
“The fact that there is a fast-growing domestic business for online players like Agoda.com, which only accepts credit card payments, shows that the online market in Indonesia is maturing,” explained Yusuf.
“There is a huge market here (in Indonesia) but very few players. There are e-commerce sites, but they are not fully online.”
Goindonesia.com, which will initially feature hotel and transfer bookings and later airline and package tours, will offer a range of payment options such as Internet banking, closed-amount payments via ATM, and credit card transactions.
“There is a big opportunity for us to cater for those who have been thinking of (buying products) online, but are reluctant to use their credit cards because of fraud worries,” said Yusuf.
Commenting on the possibility of cannibalising KAHA’s business as a traditional offline travel consultant company, Yusuf said: “There will be a shift of market, but KAHA’s (offline) market will continue to grow in line with the growth of traffic in Indonesia.”
“Traditional travel business will continue to grow, but the online business will grow faster,” he added.
